What's Your Credit Card Personality?

Do you whip out your credit card without a second thought? Your penchant for plastic may say more about you than you think.

A number of recent studies have linked our spending styles to personality traits (and in some cases, character flaws). “There is definitely a component of psychology that looks at how we spend, and what that means,” says Matt Wallaert, a behavioral psychologist in New York who studies judgment and decision-making issues.

Tell us, big spender — do any of these charging styles sound like you?

The Impulsive Bargain Shopper

Can’t resist a big, blow-out sale? Before you beat yourself up about it, consider this.

A recent British survey found that while unplanned purchases may indeed be spontaneous, they’re not necessarily frivolous. According to the survey, the number of impulse grocery buys increased from 2008 to 2011, while fashion and entertainment purchases decreased. This suggests that consumers are impulse-buying bargain-priced necessities, rather than luxury items.

And these buys can indeed be smart, Wallaert says. “You’re going to need milk eventually,” he says. “You may not intend to get milk, but milk is on sale and you get it — that’s okay.” Chances are you won’t get in debt if you stick to must-haves.

The Self-Esteem Spender

“Charge it!” Ahhh — did that feel good?

A recent experimental study found that people who were dealt a blow to their self-esteem were more likely to buy an item on credit as opposed to spending hard cash. That’s because credit card purchases tend to feel less painful than handing over bills and coins. “If you spend with cash, it’s perceived as a loss,” Wallaert says. “If you’re already feeling bad, who wants to take another loss? You’d rather defer the loss to the end of the month.”

If your self-esteem is running on empty after a bad day at work and you’re tempted to run out and buy a pair of designer jeans, wait a few hours before hitting the mall. “Tell yourself, ‘I’m going to jog for half an hour and then, if I still feel like shopping, I’ll go,’” Wallaert suggests. (He’s willing to bet you won’t feel like it anymore.)

The ‘It's-Good-for-Me’ Investor

Willing to foot the bill one day — as long as it’s good for your future?

A surprising study from Ohio State University found that college students who take on debt — whether from credit cards or student loans — actually have higher self-esteem than those who do not. (The effects tend to differ according to the students’ backgrounds; students from lower- and middle-class backgrounds get bigger ego boosts from being in debt than those from wealthy families.)

Why? The researchers chalk it up to the students having pride in making an investment in their future.

The Chronic Over-Spender

Oops! If you have credit at your disposal, you may be likely to pay more than you can afford. A study by researchers at the Massachusetts Institute of Technology found that people tended to spend more for an item when they were told it had to be purchased by credit card. And these results further echo the concept that spending with cash feels more painful, Wallaert says.

To avoid bad credit card habits like overspending, Wallaert advises keeping a jar in your house to collect cash. When you buy something with a credit card, draw out an equal amount of cash from your bank and deposit it in the jar to pay off your credit card at the end of the month and avoid being in debt. “That way, you still have to experience that loss,” Wallaert says.

The Returnaholic

Are you on a first-name basis with the return clerk at your favorite store? You’re not alone: According to The Retail Equation, a company that helps stores monitor returns, 1 percent of all consumers are “returnaholics” — people who shop and return obsessively.

What’s with all the mind-changing? People with these types of shopping habits are usually more likely to experience “shopping remorse,” explains Wallaert. Though it's financially responsible to return an item that you truly can’t afford rather than keep it and go into debt, people who find themselves spending hours in return lines should take care to buy only the things they will use. “Returning takes time,” Wallaert says. “Every time you return something, you could be doing something else to make or save money. And that’s really going to have long-term negative financial consequences.”

The Minimum-Payment Maker

Sure, that minimum payment amount listed on your credit card statement is helpful — but it may actually keep you from paying down your balance quickly — and keep you in debt longer.

A British study discovered that people who received credit card bills that specified minimum payments put less money toward their balances than those who got bills with no specified minimum. “If I say the minimum payment is $100, you think, ‘Well, I’m a good person, I want to pay $125,’” Wallaert says. “But what if the minimum payment was $125? You might want to pay $150. It’s where you set that ‘anchor’ that matters.”

To avoid falling into this debt trap, focus on the total balance on your bill, rather than the minimum payment listed. “Pay as much as you can possibly afford,” Wallaert says. “Set aside money for your expenses, and then put everything left over toward your balance.”

The Impatient Purchaser

Could having the last name of Zigler or Zimmerman make you more prone to impulse buying or certain credit card habits than if your last name were Anderson? Yes, say a Georgetown University study, which found that people with surnames that started with letters at the end of the alphabet were quicker to buy limited-quantity deals than others.

Why would your name have anything to do with your charging habits? Researchers believe this effect stems from childhood — people with “Y” and “Z” names often found themselves at the end of the line in school (and, basically, they were tired of waiting!).

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